With the rapid development of the precision grinding and micro-cutting technology, scholars have become more and more interested in the forming mechanism and related characteristics of the rounded-edge tool and the negative rake angle tool. Based on DEFORM-2D forming software, this paper investigates the edge effect of the negative rake angle tool in micro-cutting condition. Through the simulation comparison analysis, it is clear that three deformation regions appear in front of the tool surface, namely the first shear-slip region, the second tool-material contact friction region and the third edge effect deformation region when the negative rake tool cuts the plastic metal material-C10100 with a large edge radius. And a triangle stagnant region appears in front of the tool surface due to the edge effect. By analysing the influence of the ratio of the edge radius to the cutting thickness on the mechanism of orthogonal cutting of negative rake tools, it is found that the minimum cutting thickness value is between